Question
In: Accounting
Q1 The standard cost card shows the following details relating to material needed to produce product...
Q1
The standard cost card shows the following details relating to
material needed to produce product QPz
Quantity of raw material required 20 Kg.
Rate of raw material OMR 3per Kg
Actual production of QPz:
Production during the month 200 Kg.
Quantity of material used 3,800 Kg.
Raw material purchased 5000 kg @ 4 per kg.
Calculate:
Material Cost Variance
Material Price Variance
Material Usage Variance. Also verify your answer
If there is 10% increase in standard material price how much
impact it will create in material cost variance. 6 Marks
Q2
Material price variance - OMR 500 (F)
Standard rate of material - OMR 15
Standard quantity of raw material for actual production - 5000
Kg
Actual quantity of raw material used in actual production
5,500 Kg
Calculate material cost variance 2 Marks
Q3. Briefly explain in your own words with examples
controllable variance and non controllable variance. 2 Marks
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Q1 Maria manufacturers gives the following details of standard cost relating to one unit of a...
Q1
Maria manufacturers gives the following details of standard cost
relating to one unit of a product.
Quantity of raw material
required
20 Kg.
Rate of raw
material
OMR 8 per Kg
Actual production of QPz:
Production during the month
2000 Kg.
Quantity of material used
40,000 Kg.
Raw material purchased
45000 kg @ 9 per kg.
Required:
Compute three variances relating to material and verify the
answer. 4 Marks
If there is 20% decrease in standard...
Q1 Maria manufacturers gives the following details of standard cost relating to one unit of a...
Q1
Maria manufacturers gives the following details of standard cost
relating to one unit of a product.
Quantity of raw material
required
20 Kg.
Rate of raw
material
OMR 8 per Kg
Actual production of QPz:
Production during the month
2000 Kg.
Quantity of material used
40,000 Kg.
Raw material purchased
45000 kg @ 9 per kg.
Required:
Compute three variances relating to material and verify the
answer.
If there is 20% decrease in standard usage of...
The Standard material cost of produce 20 units of Almari Company is: 20 kg of Material...
The Standard material cost of produce 20 units of Almari Company
is:
20 kg of Material
A @ SR 8 per
kg
25 kg of Material
B @ SR 4 per
kg
During a period, 80 units of mixture X was produced from the
usages of:
82 kg of Material A @ SR 9 per unit
98 kg of Material B @ SR 5 per unit
Calculate : Material Cost Variance
(MCV)
A.
188 (Adverse)
B.
1040 (Favorable)
C.
98 (Adverse)
D.
90...
The standard cost card for a product indicates that one unit of the product requires 8...
The standard cost card for a product indicates that one unit of
the product requires 8 kilograms of a raw material at $0.80 per
kilogram. The production of the product in April was 870 units, but
production had been budgeted for 850 units. During April, 7,150
kilograms of the raw material were purchased for $5,577. All the
kilograms of the raw material purchased were used in production.
What was the materials quantity variance?
$152 F
$152 U
$280 F
$280...
XYZ Company manufactures tables. A standard cost card for the manufacture of one table shows the...
XYZ Company manufactures tables. A standard cost card
for the manufacture of one table shows the following:
Standard Cost per Table:
Direct material: 4 sq. ft. @ $3/sq. ft.
$12
Direct labor: 2 hours @ $8/hr
16
Total prime costs
$28
In November, the company produced 1,000 tables. Actual
production costs and quantities were:
Direct material: 3,900 sq. ft. @ $3.10/sq.
ft.
$12
Direct labor: 2,300 hours @ $7.80/hr
16
Required:
Calculate the price and quantity variances for direct
material...
Owen limited uses a standard costing system. The standard cost card for one product is shown...
Owen limited uses a standard costing system. The standard cost
card for one product is shown below.
Direct material
4kg @$5 per
kg
20
Direct labour
2 hour @ $8 per
hour
16
Variable
overhead
2 hours @ $3.5 per
hour
7
Total variable
cost
43
Fixed
overhead
2 hours @ $7 per
hour
14
Total production
cost
57
Standard selling
price
70
Standard profit
margin
13
The budgeted output and sales was 1000 units. Actual production
and...
HalimSdnBhd uses a standard costing system. The standard cost card for one product is shown below:...
HalimSdnBhd uses a standard costing system. The standard cost
card for one product is shown below:
Direct Material 4 kg at RM5 per kg
RM
20
Direct Labor 2 hours at RM8 per hour 16
Variable Overhead 2 hours at RM 7.5 per hour15
Total Product Cost 51
The budgeted output and sales was 1,000 units. Actual output for
the period was 1,300 units . Actual cost was as follows:
Direct
Material:
5,000 kg, costing 22,750
Direct
Labor:
2,860 hours,...
) A partial standard cost card for the single product produced by Macentoch Company is given...
) A partial standard cost card for the single product produced
by Macentoch Company is given below:
Direct materials: 3 pounds @ $8 per pound
Direct labor: ? hours @ ? Per hour
Last period the company produced 4,000 units of product. Cost
and other data associated with this production are given below:
Direct materials purchased and used, at cost
$103,320
Direct labor cost incurred (10,400 hours)
$120,640
Materials price variance
$2,520
Unfavorable
Labor efficiency variance
$4,800
Unfavorable
Total labor...
Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard...
Degregorio Corporation makes a product that uses a material with
the following direct material standards: Standard Quantity is 3.8
kilos per unit; Standard price is $7.00 per kilo. The company
produced 5,600 units in November using 21,750 kilos of the
material. During the month, the company purchased 24,800 kilos of
the direct material at a total cost of $168,640. The direct
materials purchases variance is computed when the direct materials
are purchased. The direct materials purchase price variance for
November...
Material and Labor Variances The following actual and standard cost data for direct material and direct...
Material and Labor Variances
The following actual and standard cost data for direct material and
direct labor relate to the production of 2,000 units of a
product:
Actual Costs
Standard Costs
Direct material
4,200
lbs. @
$4.90
4,000
lbs. @
$5.20
Direct labor
5,700
hrs. @
$9.30
6,000
hrs. @
$9.50
Determine the following variances:
Do not use negative signs with any of your answers. Next to each
variance answer, select either "F" for Favorable or "U" for
Unfavorable.
Materials...
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